Recently I found this book and after reading it, I thought to share the book with you. The author is Basant Maheshwari, who runs the forum theequity.com I am very biased against the Indian books (may be an extension of MNC bias in investing) and never liked anyone expect probably Parag Parikh. However I really liked this book.The book does not propagate any new way of investing and is a close adaptation of Peter Lynch’s method of growth at reasonable price. Nevertheless the book is readable for various reasons.
The first reason is humbleness of the author. The author is very open in admitting mistakes, exposing his own stupidity… when I read him, I got a solace that I am not the only stupid investor on NSE.
“My early years were wasted in searching for low P/E stocks hitting 52 weeks low which was a classic way to lose capital.”
He has described his journey and has been bold enough to emphasize “looking for larger picture” rather than critical line by line analysis of balance sheet. He has also been bold enough to suggest judicious use of leverage etc. although I feel it may be dangerous for investor reading the first investment book. The author’s brute honesty, willingness to accept mistakes, humbleness and quest for knowledge is very evident in every chapter- probably these are the qualities which makes successful investors.
The author has been bold enough to use his own quotes, rather than borrowing cliches from somewhere else- and quotes are really funny. “An investor who regrets his misses is like a person who repents about every girl he saw but did not marry!”. “Identifying a great investment idea is as difficult as finding a right spouse- but after you have found on, it pays to stay on.”
The book is an easy read and useful at least you consolidate what you may be already knowing. I recommend this book to every investor.